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    Individual risk attitudes and local unemployment: evidence from Italy in the Great Recession

    Filipetti, A. and Lee, N. (2021) Individual risk attitudes and local unemployment: evidence from Italy in the Great Recession. Working Paper. Birkbeck, University of London, London, UK.

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    Abstract

    The willingness to take risks is an important part of the economy as it underpins activities such as entrepreneurship and investments. Individual risk attitudes are likely to be shaped both by their personal characteristics and their local context. In this paper we investigate the extent to which individual risk-taking attitudes are influenced by the strength, or otherwise, of their local economy, using panel data on over 12,000 Italians. After controlling for individual characteristics - including individual job loss - and province fixed effects, we find that worsening unemployment reduces people’s willingness to take risks. By reducing tolerance of risk, local unemployment may hinder the abilities of local economies to respond to shocks.

    Metadata

    Item Type: Monograph (Working Paper)
    Additional Information: CIMR Working Paper no.53, ISSN: 2052-062X
    Keyword(s) / Subject(s): risk attitude, territorial impact of the crisis, uneven regional development, regional resilience, psychology
    School: School of Business, Economics & Informatics > Management
    Research Centres and Institutes: Innovation Management Research, Birkbeck Centre for
    Depositing User: Administrator
    Date Deposited: 21 Apr 2021 10:43
    Last Modified: 10 Jun 2021 11:21
    URI: https://eprints.bbk.ac.uk/id/eprint/43968

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